Form 8-K - Current report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

Current Report

Pursuant to Section 13 or 15(d) of

The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) August 8, 2023

Landmark Bancorp, Inc.

(Exact name of registrant as specified in its charter)

Commission File Number: 000-33203

Delaware

43-1930755

(State or other jurisdiction

of incorporation)

(I.R.S. Employer

Identification Number)

701 Poyntz

Manhattan, Kansas 66502

(Address of principal executive offices, including zip code)

(785) 565-2000

(Registrant’s telephone number, including area code)

N/A

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, $0.01 Par Value		LARK		The Nasdaq Global Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02. Results of Operations and Financial Condition.

On August 8, 2023, Landmark Bancorp, Inc. (the “Company”) issued a press release announcing financial results for the three and six months ended June 30, 2023. The press release is furnished as Exhibit 99.1 and is incorporated herein by reference.

The information in this item and the attached exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in any such filing.

Item 8.01. Other Events.

The Company also announced on August 8, 2023, that its Board of Directors approved a cash dividend of $0.21 per share. The cash dividend will be paid to all stockholders of record as of the close of business on August 23, 2023 and payable on September 6, 2023.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

	99.1		Press Release dated August 8, 2023

	104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	LANDMARK BANCORP, INC

Dated: August 8, 2023	By:	/s/ Mark A. Herpich
		Mark A. Herpich
		Chief Financial Officer

Exhibit 99.1

PRESS RELEASE

FOR IMMEDIATE RELEASE	Contacts:
August 8, 2023	Michael E. Scheopner
	President and Chief Executive Officer
	Mark A. Herpich
	Chief Financial Officer
	(785) 565-2000

Landmark Bancorp, Inc. Announces Second Quarter Earnings Per Share of $0.64

Declares Cash Dividend of $0.21 per Share

(Manhattan, KS, August 8, 2023) – Landmark Bancorp, Inc. (“Landmark”; Nasdaq: LARK) reported diluted earnings per share of $0.64 for the three months ended June 30, 2023, compared to $0.64 per share in the first quarter of 2023 and $0.58 per share in the same quarter last year. Net earnings for the second quarter of 2023 amounted to $3.4 million, compared to $3.4 million in the prior quarter and $3.0 million for the second quarter of 2022. For the three months ended June 30, 2023, the return on average assets was 0.88%, the return on average equity was 11.52%, and the efficiency ratio was 69.2%.

For the first six months of 2023, diluted earnings per share totaled $1.29 compared to $1.18 during the same period in 2022. Net earnings for the six months of 2023 totaled $6.7 million, compared to $6.2 million in the first six months of 2022. For the six months ended June 30, 2023, the return on average assets was 0.89% and the return on average equity was 11.77%.

In making this announcement, Michael E. Scheopner, President and Chief Executive Officer of Landmark, said, “While growth in interest rates over this past year has increased funding costs and provided stress to the banking industry, Landmark continued to provide solid earnings this quarter driven by growth in loans, well-controlled expenses, and solid credit quality. Compared to the first quarter 2023, total gross loans increased by $23.5 million, or 10.8% on an annualized basis mainly due to growth in agriculture, commercial and residential mortgage loans. Deposits decreased $13.1 million during the second quarter of 2023 due to lower non-interest demand deposits but offset by growth in money market, interest checking and certificates of deposit accounts. Our loan to deposit ratio this quarter remains relatively low and reflects ample liquidity for future loan growth. This quarter’s net interest income declined slightly from the prior quarter, as growth in interest income on loans was offset by increased interest expense on deposits and other borrowings. Our net interest margin totaled 3.21% during the second quarter of 2023 as compared to 3.31% in the prior quarter and 3.05% in the second quarter last year. Non-interest income increased $334,000 compared to the first quarter 2023 mainly due to growth in both fees and service charges and gains on sales of residential mortgage loans. Non-interest expense remained well controlled in the second quarter 2023 increasing slightly compared to the prior quarter.”

Mr. Scheopner continued, “This quarter we continued to see low net loan charge-offs, declining non-performing assets and low levels of delinquent loans. Landmark recorded net loan charge-offs of $68,000 in the second quarter of 2023 compared to $42,000 in the second quarter of 2022 and $47,000 in the first quarter of 2023. Non-accrual loans totaled $2.8 million, or 0.31%, of gross loans at June 30, 2023 and have declined $2.1 million over the last twelve months. The allowance for loan losses totaled $10.4 million at June 30, 2023, or 1.17% of period end gross loans, while our equity to assets ratio totaled 7.62%.”

Landmark’s Board of Directors declared a cash dividend of $0.21 per share, to be paid September 6, 2023, to common stockholders of record as of the close of business on August 23, 2023. Management will host a conference call to discuss the Company’s financial results at 10:00 a.m. (Central time) on Wednesday, August 9, 2023. Investors may participate via telephone by dialing (833) 470-1428 and using access code 545875. A replay of the call will be available through September 8, 2023, by dialing (866) 813-9403 and using access code 287303.

SUMMARY OF SECOND QUARTER RESULTS

Net Interest Income

Net interest income in the second quarter of 2023 amounted to $10.8 million representing a slight decrease compared to the previous quarter. This decrease in net interest income was due mainly to higher interest expense on deposits and borrowed funds but partly offset by growth in interest income on loans. The net interest margin totaled 3.21% during the second quarter compared to 3.31% in the prior quarter. Compared to the previous quarter, interest income on loans increased $1.2 million, or 11.0%, to $12.6 million due to both higher rates and balances while the average tax-equivalent yield on the loan portfolio increased 37 basis points to 5.80%. Interest income on investment securities increased slightly due to small increases in rates and balances. The average tax-equivalent yield on investment securities totaled 2.70% this quarter compared to 2.68% in the prior quarter.

Interest expense on deposits increased $913,000 in the second quarter 2023, compared to the prior quarter, mainly due to higher rates and average balances on interest-bearing deposits. The average rate on interest-bearing deposits increased this quarter to 1.57% compared to 1.18% in the prior quarter. Interest expense on total borrowed funds grew $450,000, compared to the prior quarter, as the average rate paid increased 36 basis points to 5.05% and average balances grew $21.3 million.

Non-Interest Income

Non-interest income totaled $3.8 million for the second quarter of 2023, an increase of $33,000, or 0.9%, compared to the same period last year and an increase of $334,000, or 9.6%, from the previous quarter. The increase in non-interest income during the second quarter of 2023 compared to the same period last year was primarily due to increases of $101,000 in fees and services charges, $142,000 in other non-interest income and $33,000 in bank owned life insurance (“BOLI”) income. The increases in fees and services charges and BOLI income were primarily associated with the acquisition of Freedom Bank in the fourth quarter of 2022, as the acquisition increased Landmark’s deposit base and BOLI assets. The increase in other non-interest income was primarily related to an increase in rental income associated with a branch which was vacant in the prior year period. Gains on sales of one-to-four family residential loans declined $243,000 from the same period last year due to lower fixed rate mortgage originations. Compared to the prior quarter, the increase in non-interest income was primarily due to seasonal increases with fees and service charges and increased loan originations of residential mortgage loans, as well as a full quarter of rental income noted above.

Non-Interest Expense

During the second quarter of 2023, non-interest expense totaled $10.3 million, an increase of $1.3 million, or 14.7%, over the same period in 2022 but unchanged compared to the prior quarter. Compared to the same period last year, higher costs this year for compensation and benefits, occupancy and equipment, data processing and other non-interest expenses were primarily due to higher operating costs associated with the Freedom Bank acquisition, while amortization expense increased $137,000 this quarter due to the core deposit intangible recorded for this acquisition. Non-interest expense was flat compared to the prior quarter as higher professional fees were offset by lower data processing costs.

Income Tax Expense

Landmark recorded income tax expense of $701,000 in the second quarter of 2023 compared to income tax expense of $639,000 in the second quarter of 2022 and $693,000 in the first quarter of 2023. The effective tax rate was 17.3% in the second quarter of 2023 compared to 17.4% in the second quarter of 2022 and 17.1% in the first quarter of 2023.

Liquidity Highlights

In addition to local retail, commercial and public fund deposits, the Company has access to multiple sources of brokered deposits that can be utilized for liquidity. Landmark also has diverse sources of liquidity available through both secured and unsecured borrowing lines of credit. At June 30, 2023, Landmark had collateral pledged to the Federal Home Loan Bank (“FHLB”) that would allow for an additional $129.0 million of FHLB borrowings. Additionally, investment securities were pledged to the Federal Reserve discount window that provides borrowing capacity with the Federal Reserve of $60.8 million. Landmark also had various other federal funds agreements, both secured and unsecured, with correspondent banks totaling approximately $30.0 million in available credit at June 30, 2023.

As of June 30, 2023, Landmark had unpledged available-for-sale investment securities with a fair value of $73.8 million as well as approximately $94.6 million of pledged investment securities in excess of required levels. The average life of the Company’s investment portfolio is approximately 4.4 years and is projected to generate cash flow through maturities of $76.3 million over the next 12 months.

Balance Sheet Highlights

As of June 30, 2023, gross loans totaled $893.3 million, an increase of $23.5 million, or 10.8% annualized since March 31, 2023. During the quarter, loan growth was comprised of one-to-four family residential real estate (growth of $13.6 million), commercial (growth of $9.1 million) and agriculture loans (growth of $3.8 million), offset by a decline in construction and commercial real estate loans. Investment securities decreased $5.8 million, during the second quarter of 2023, while gross unrealized net losses on these investment securities increased from $26.5 million at March 31, 2023 to $30.0 million at June 30, 2023. Deposit balances decreased $13.1 million, or 4.0% on an annualized basis, to $1.3 billion at June 30, 2023. The decrease in deposits was mainly driven by declines in non-interest demand (decline of $39.6 million) and savings accounts (decline of $9.1 million) this quarter which was partially offset by higher money market, interest checking and certificate of deposit accounts, which increased in total by $26.5 million. Total borrowings, including Federal Home Loan Bank advances and repurchase agreements increased $31.9 million this quarter to fund the loan growth and offset the lower deposit balances. At June 30, 2023, the loan to deposits ratio was 68.9% compared to 66.4% in the prior quarter and 58.5% in the same period last year.

Total deposits include estimated uninsured deposits of $193.1 million and $224.7 million as of June 30, 2023 and March 31, 2023, respectively. This represents approximately 15% of total deposits at June 30, 2023 and compares favorably with other similar community banking organizations. Over 96% of Landmark’s total deposits were considered core deposits at June 30, 2023. These deposit balances are from retail, commercial and public fund customers located in the markets where the Company has bank branch locations. Brokered deposits are considered non-core and totaled $41.2 million at June 30, 2023 compared to $11.3 million at March 31, 2023 and are utilized as an additional source of liquidity.

Stockholders’ equity decreased slightly to $117.4 million (book value of $22.50 per share) as of June 30, 2023, from $117.7 million (book value of $22.57 per share) as of March 31, 2023, due to an increase in other comprehensive losses during the second quarter of 2023 related to the decline in the unrealized losses on investment securities. The ratio of equity to total assets decreased to 7.62% on June 30, 2023, from 7.74% on March 31, 2023.

The allowance for credit losses totaled $10.4 million, or 1.17% of total gross loans on June 30, 2023, compared to $10.3 million, or 1.18% of total gross loans on March 31, 2023. Net loan charge-offs totaled $68,000 in the second quarter of 2023, compared to $47,000 during the first quarter of 2023 and $42,000 during the same quarter last year. The ratio of annualized net loan charge-offs to total average loans was 0.03% in the second quarter of 2023, 0.02% in the first quarter of 2023 and 0.03% in the same quarter last year. A provision for credit losses of $250,000 was made in the second quarter of 2023 as credit models factored in growth in our overall loan portfolio for this quarter. A provision for credit losses of $49,000 was made in the first quarter of 2023 related to unfunded loan commitments and held-to-maturity investments securities. No provision for credit losses was recorded in the second quarter of 2022.

Non-performing loans totaled $2.8 million, or 0.31% of gross loans, while loans 30-89 days delinquent totaled $614,000, or 0.07% of gross loans, as of June 30, 2023. Real estate owned totaled $0.9 million at June 30, 2023.

About Landmark

Landmark Bancorp, Inc., the holding company for Landmark National Bank, is listed on the Nasdaq Global Market under the symbol “LARK.” Headquartered in Manhattan, Kansas, Landmark National Bank is a community banking organization dedicated to providing quality financial and banking services. Landmark National Bank has 31 locations in 24 communities across Kansas: Manhattan (2), Auburn, Dodge City (2), Fort Scott (2), Garden City, Great Bend (2), Hoisington, Iola, Junction City, Kincaid, La Crosse, Lawrence (2), Lenexa, Louisburg, Mound City, Osage City, Osawatomie, Overland Park (2), Paola, Pittsburg, Prairie Village, Topeka (2), Wamego and Wellsville, Kansas. Visit www.banklandmark.com for more information.

Special Note Concerning Forward-Looking Statements

This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations, plans, objectives, future performance and business of Landmark. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of our management and on information currently available to management, are generally identifiable by the use of words such as “believe,” “expect,” “anticipate,” “plan,” “intend,” “estimate,” “may,” “will,” “would,” “could,” “should” or other similar expressions. Additionally, all statements in this press release, including forward-looking statements, speak only as of the date they are made, and Landmark undertakes no obligation to update any statement in light of new information or future events. A number of factors, many of which are beyond our ability to control or predict, could cause actual results to differ materially from those in our forward-looking statements. These factors include, among others, the following: (i) the strength of the local, national and international economies, including the effects of inflationary pressures and supply chain constraints on such economies; (ii) changes in state and federal laws, regulations and governmental policies concerning banking, securities, consumer protection, insurance, monetary, trade and tax matters, including any changes in response to the recent failures of other banks; (iii) changes in interest rates and prepayment rates of our assets; (iv) increased competition in the financial services sector and the inability to attract new customers, including from non-bank competitors such as credit unions and “fintech” companies; (v) timely development and acceptance of new products and services; (vi) changes in technology and the ability to develop and maintain secure and reliable electronic systems; (vii) our risk management framework; (viii) interruptions in information technology and telecommunications systems and third-party services; (ix) changes and uncertainty in benchmark interest rates, including the elimination of LIBOR and the development of a substitute; (x) the effects of severe weather, natural disasters, widespread disease or pandemics (including the COVID-19 pandemic), or other external events; (xi) the loss of key executives or employees; (xii) changes in consumer spending; (xiii) integration of acquired businesses; (xiv) unexpected outcomes of existing or new litigation; (xv) changes in accounting policies and practices, such as the implementation of the current expected credit losses accounting standard; (xvi) the economic impact of past and any future terrorist attacks, acts of war, including the current conflict in Ukraine, or threats thereof, and the response of the United States to any such threats and attacks; (xvii) the ability to manage credit risk, forecast loan losses and maintain an adequate allowance for loan losses; (xviii) fluctuations in the value of securities held in our securities portfolio; (xix) concentrations within our loan portfolio, large loans to certain borrowers, and large deposits from certain clients; (xx) the concentration of large deposits from certain clients who have balances above current FDIC insurance limits and may withdraw deposits to diversify their exposure; (xxi) the level of non-performing assets on our balance sheets; (xxii) the ability to raise additional capital; (xxiii) cyber-attacks; (xxiv) declines in real estate values; (xxv) the effects of fraud on the part of our employees, customers, vendors or counterparties; and (xxvi) any other risks described in the “Risk Factors” sections of reports filed by Landmark with the Securities and Exchange Commission. These risks and uncertainties should be considered in evaluating forward-looking statements, and undue reliance should not be placed on such statements. Additional information concerning Landmark and its business, including additional risk factors that could materially affect Landmark’s financial results, is included in our filings with the Securities and Exchange Commission.

LANDMARK BANCORP, INC. AND SUBSIDIARIES

Consolidated Balance Sheets (unaudited)

(Dollars in thousands)	June 30,			March 31,			December 31,			September 30,			June 30,
	2023			2023			2022			2022			2022
Assets
Cash and cash equivalents	$	20,038		$	23,764		$	23,156		$	49,234		$	30,413
Interest-bearing deposits at other banks		8,336			8,586			9,084			8,844			8,360
Investment securities available-for-sale, at fair value:
U.S. treasury securities		121,480			121,759			123,111			127,445			135,459
U.S. federal agency obligations		-			1,993			1,988			4,979			14,931
Municipal obligations, tax exempt		124,451			128,281			127,262			128,392			134,994
Municipal obligations, taxable		77,713			73,468			67,244			61,959			49,356
Agency mortgage-backed securities		160,734			164,669			169,701			161,331			151,893
Total investment securities available-for-sale		484,378			490,170			489,306			484,106			486,633
Investment securities held-to-maturity		3,496			3,467			3,524			-			-
Bank stocks, at cost		9,445			6,876			5,470			6,641			2,881
Loans:
One-to-four family residential real estate		259,655			246,079			236,982			205,466			192,517
Construction and land		22,016			23,137			22,725			18,119			23,092
Commercial real estate		314,889			316,900			304,074			228,669			209,879
Commercial		181,424			172,331			173,415			144,582			137,929
Paycheck Protection Program (PPP)		-			21			21			410			652
Agriculture		84,345			80,499			84,283			86,114			78,240
Municipal		2,711			2,004			2,026			2,036			2,076
Consumer		28,219			28,835			26,664			25,911			25,531
Total gross loans		893,259			869,806			850,190			711,307			669,916
Net deferred loan (fees) costs and loans in process		(261	)		2			(250	)		(311	)		229
Allowance for credit losses		(10,449	)		(10,267	)		(8,791	)		(8,858	)		(8,315	)
Loans, net		882,549			859,541			841,149			702,138			661,830
Loans held for sale, at fair value		3,900			1,839			2,488			2,741			6,264
Bank owned life insurance		37,764			37,541			37,323			32,672			32,483
Premises and equipment, net		24,027			24,241			24,327			20,628			20,679
Goodwill		32,199			32,199			32,199			17,532			17,532
Other intangible assets, net		3,612			3,809			4,006			36			52
Mortgage servicing rights		3,514			3,652			3,813			3,980			4,025
Real estate owned, net		934			934			934			1,288			1,288
Other assets		25,148			24,198			26,088			25,456			19,911
Total assets	$	1,539,340		$	1,520,817		$	1,502,867		$	1,355,296		$	1,292,351

Liabilities and Stockholders’ Equity
Liabilities:
Deposits:
Non-interest-bearing demand		382,410			421,971			410,142			347,942			343,107
Money market and checking		606,474			588,366			626,659			504,973			520,056
Savings		160,426			169,504			170,570			170,988			170,419
Certificates of deposit		131,661			114,189			93,278			93,234			97,885
Total deposits		1,280,971			1,294,030			1,300,649			1,117,137			1,131,467
Federal Home Loan Bank borrowings		76,185			37,804			8,200			74,900			-
Subordinated debentures		21,651			21,651			21,651			21,651			21,651
Other borrowings		22,293			28,750			38,402			16,349			6,223
Accrued interest and other liabilities		20,887			20,864			22,532			19,775			15,708
Total liabilities		1,421,987			1,403,099			1,391,434			1,249,812			1,175,049
Stockholders’ equity:
Common stock		52			52			52			50			50
Additional paid-in capital		84,475			84,413			84,273			79,329			79,284
Retained earnings		55,498			53,231			52,174			58,114			56,662
Treasury stock, at cost		-			-			-			(1,040	)		(538	)
Accumulated other comprehensive (loss) income		(22,672	)		(19,978	)		(25,066	)		(30,969	)		(18,156	)
Total stockholders’ equity		117,353			117,718			111,433			105,484			117,302
Total liabilities and stockholders’ equity	$	1,539,340		$	1,520,817		$	1,502,867		$	1,355,296		$	1,292,351

LANDMARK BANCORP, INC. AND SUBSIDIARIES

Consolidated Statements of Earnings (unaudited)

(Dollars in thousands, except per share amounts)	Three months ended,						Six months ended,
	June 30,		March 31,		June 30,		June 30,		June 30,
	2023		2023		2022		2023		2022
Interest income:
Loans	$	12,623	$	11,376	$	7,156	$	23,999	$	14,347
Investment securities:
Taxable		2,379		2,317		1,417		4,696		2,408
Tax-exempt		775		786		730		1,561		1,452
Interest-bearing deposits at banks		49		98		126		147		188
Total interest income		15,826		14,577		9,429		30,403		18,395
Interest expense:
Deposits		3,452		2,539		358		5,991		553
Subordinated debentures		387		364		165		751		288
Borrowings		1,154		727		8		1,881		11
Total interest expense		4,993		3,630		531		8,623		852
Net interest income		10,833		10,947		8,898		21,780		17,543
Provision (benefit) for credit losses		250		49		-		299		(500	)
Net interest income after provision (benefit) for credit losses		10,583		10,898		8,898		21,481		18,043
Non-interest income:
Fees and service charges		2,481		2,358		2,380		4,839		4,568
Gains on sales of loans, net		830		693		1,073		1,523		1,978
Bank owned life insurance		223		218		190		441		377
Other		295		226		153		521		436
Total non-interest income		3,829		3,495		3,796		7,324		7,359
Non-interest expense:
Compensation and benefits		5,572		5,542		4,953		11,114		9,728
Occupancy and equipment		1,394		1,369		1,177		2,763		2,410
Data processing		431		589		362		1,020		702
Amortization of mortgage servicing rights and other intangibles		472		461		335		933		651
Professional fees		607		491		415		1,098		866
Acquisition costs		-		-		221		-		221
Other		1,873		1,891		1,559		3,764		3,282
Total non-interest expense		10,349		10,343		9,022		20,692		17,860
Earnings before income taxes		4,063		4,050		3,672		8,113		7,542
Income tax expense		701		693		639		1,394		1,376
Net earnings	$	3,362	$	3,357	$	3,033	$	6,719	$	6,166

Net earnings per share (1)
Basic	$	0.64	$	0.64	$	0.58	$	1.29	$	1.18
Diluted		0.64		0.64		0.58		1.29		1.17
Dividends per share (1)		0.21		0.21		0.20		0.42		0.40
Shares outstanding at end of period (1)		5,215,575		5,215,575		5,225,161		5,215,575		5,225,161
Weighted average common shares outstanding - basic (1)		5,215,575		5,213,125		5,237,837		5,214,357		5,242,558
Weighted average common shares outstanding - diluted (1)		5,219,550		5,220,688		5,252,546		5,219,760		5,260,313

Tax equivalent net interest income	$	11,021	$	11,144	$	9,094	$	22,165	$	17,934

(1) Share and per share values at or for the periods ended June 30, 2022 have been adjusted to give effect to the 5% stock dividend paid during December 2022.

LANDMARK BANCORP, INC. AND SUBSIDIARIES

Select Ratios and Other Data (unaudited)

(Dollars in thousands, except per share amounts)	As of or for the three months ended,									As of or for the six months ended,
	June 30,			March 31,			June 30,			June 30,			June 30,
	2023			2023			2022			2023			2022
Performance ratios:
Return on average assets (1)		0.88	%		0.90	%		0.93	%		0.89	%		0.95	%
Return on average equity (1)		11.52	%		12.04	%		10.04	%		11.77	%		9.81	%
Net interest margin (1)(2)		3.21	%		3.31	%		3.05	%		3.26	%		3.02	%
Effective tax rate		17.3	%		17.1	%		17.4	%		17.2	%		18.2	%
Efficiency ratio (3)		69.2	%		70.1	%		69.1	%		69.7	%		70.9	%
Non-interest income to total income (3)		26.1	%		24.2	%		29.9	%		25.2	%		29.2	%

Average balances:
Investment securities	$	495,456		$	499,538		$	477,035		$	497,486		$	449,667
Loans		873,910			850,331			653,013			862,186			644,569
Assets		1,525,589			1,511,077			1,307,112			1,518,373			1,306,446
Interest-bearing deposits		882,726			872,900			791,257			877,841			791,803
FHLB advances and other borrowings		77,176			66,868			-			61,285			-
Subordinated debentures		21,651			21,651			21,651			21,651			21,651
Repurchase agreements		16,909			27,548			6,981			22,199			6,903
Stockholders’ equity	$	117,038		$	113,115			121,147		$	115,087			126,757

Average tax equivalent yield/cost (1):
Investment securities		2.70	%		2.68	%		1.97	%		2.69	%		1.90	%
Loans		5.80	%		5.43	%		4.40	%		5.62	%		4.49	%
Total interest-bearing assets		4.66	%		4.39	%		3.23	%		4.53	%		3.16	%
Interest-bearing deposits		1.57	%		1.18	%		0.18	%		1.38	%		0.14	%
FHLB advances and other borrowings		5.34	%		5.09	%		0.00	%		5.25	%		0.00	%
Subordinated debentures		7.17	%		6.82	%		3.06	%		6.99	%		2.68	%
Repurchase agreements		3.01	%		2.36	%		0.46	%		2.61	%		0.32	%
Total interest-bearing liabilities		2.01	%		1.52	%		0.26	%		1.77	%		0.21	%

Capital ratios:
Equity to total assets		7.62	%		7.74	%		9.08	%
Tangible equity to tangible assets (3)		5.42	%		5.50	%		7.82	%
Book value per share	$	22.50		$	22.57		$	22.45
Tangible book value per share (3)	$	15.63		$	15.67		$	19.08

Rollforward of allowance for credit losses (loans):
Beginning balance	$	10,267		$	8,791		$	8,357		$	8,791		$	8,775
Adoption of CECL		-			1,523			-			1,523			-
Charge-offs		(158	)		(108	)		(76	)		(266	)		(129	)
Recoveries		90			61			34			151			169
Provision (benefit) for credit losses		250			-			-			250			(500	)
Ending balance	$	10,449		$	10,267		$	8,315		$	10,449		$	8,315

Non-performing assets:
Non-accrual loans	$	2,784		$	3,311		$	4,887
Accruing loans over 90 days past due		-			-			-
Real estate owned		934			934			1,288
Total non-performing assets	$	3,718		$	4,245		$	6,175

Loans 30-89 days delinquent	$	614		$	1,490		$	877

Other ratios:
Loans to deposits		68.90	%		66.42	%		58.49	%
Loans 30-89 days delinquent and still accruing to gross loans outstanding		0.07	%		0.17	%		0.13	%
Total non-performing loans to gross loans outstanding		0.31	%		0.38	%		0.73	%
Total non-performing assets to total assets		0.24	%		0.28	%		0.48	%
Allowance for credit losses to gross loans outstanding		1.17	%		1.18	%		1.24	%
Allowance for credit losses to gross loans outstanding excluding PPP loans		1.17	%		1.18	%		1.24	%
Allowance for credit losses to total non-performing loans		375.32	%		310.09	%		170.15	%
Net loan charge-offs to average loans (1)		0.03	%		0.02	%		0.03	%		0.03	%		-0.01	%

(1) Information is annualized.

(2) Net interest margin is presented on a fully tax equivalent basis, using a 21% federal tax rate.

(3) Non-GAAP financial measures. See the “Non-GAAP Financial Measures” section of this press release for a reconciliation to the most comparable GAAP equivalent.

LANDMARK BANCORP, INC. AND SUBSIDIARIES

Non-GAAP Finacials Measures (unaudited)

(Dollars in thousands, except per share amounts)	As of or for the three months ended,									As of or for the six months ended,
	June 30,			March 31,			June 30,			June 30,			June 30,
	2023			2023			2022			2023			2022

Non-GAAP earnings reconciliation:
Net earnings	$	3,362		$	3,357		$	3,033		$	6,719		$	6,166
Add: acquisition costs		-			-			221			-			221
Less: income tax expense (effective tax rate of 24.5%)		-			-			(54	)		-			(54	)
Adjusted net earnings (A)	$	3,362		$	3,357		$	3,200		$	6,719		$	6,333

Weighted average common shares outstanding - diluted (B)		5,219,550			5,220,688			5,252,546			5,219,760			5,260,313

Adjusted diluted net earnings per share (A/B)	$	0.64		$	0.64		$	0.61		$	1.29		$	1.20
Adjusted return on average assets (1)		0.88	%		0.90	%		0.98	%		0.89	%		0.98	%
Adjusted return on average equity (1)		11.52	%		12.04	%		10.59	%		11.77	%		10.07	%

(1) Information is annualized.

Non-GAAP financial ratio reconciliation:
Total non-interest expense	$	10,349		$	10,343		$	9,022		$	20,692		$	17,860
Less: foreclosure and real estate owned expense		(3	)		(17	)		(9	)		(20	)		(32	)
Less: amortization of other intangibles		(198	)		(197	)		(15	)		(395	)		(32	)
Less: acquisition costs		-			-			(221	)		-			(221	)
Adjusted non-interest expense (A)		10,148			10,129			8,777			20,277			17,575

Net interest income (B)		10,833			10,947			8,898			21,780			17,543

Non-interest income		3,829			3,495			3,796			7,324			7,359
Less: losses (gains) on sales of investment securities, net		-			-			-			-			-
Less: gains on sales of premises and equipment and foreclosed assets		-			(1	)		-			(1	)		(114	)
Adjusted non-interest income (C)	$	3,829		$	3,494		$	3,796		$	7,323		$	7,245

Efficiency ratio (A/(B+C))		69.2	%		70.1	%		69.1	%		69.7	%		70.9	%
Non-interest income to total income (C/(B+C))		26.1	%		24.2	%		29.9	%		25.2	%		29.2	%

Total stockholders’ equity	$	117,353		$	117,718		$	117,302
Less: goodwill and other intangible assets		(35,811	)		(36,008	)		(17,584	)
Tangible equity (D)	$	81,542		$	81,710		$	99,718

Total assets	$	1,539,340		$	1,520,817		$	1,292,351
Less: goodwill and other intangible assets		(35,811	)		(36,008	)		(17,584	)
Tangible assets (E)	$	1,503,529		$	1,484,809		$	1,274,767

Tangible equity to tangible assets (D/E)		5.42	%		5.50	%		7.82	%

Shares outstanding at end of period (F)		5,215,575			5,215,575			5,225,161

Tangible book value per share (D/F)	$	15.63		$	15.67		$	19.08

Cover	Aug. 08, 2023
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Aug. 08, 2023
Entity File Number	000-33203
Entity Registrant Name	Landmark Bancorp, Inc.
Entity Central Index Key	0001141688
Entity Tax Identification Number	43-1930755
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	701 Poyntz
Entity Address, City or Town	Manhattan
Entity Address, State or Province	KS
Entity Address, Postal Zip Code	66502
City Area Code	(785)
Local Phone Number	565-2000
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, $0.01 Par Value
Trading Symbol	LARK
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false